Use this list not only as a gauge of where your small business stands in the pack, but also to make strategic decisions in your digital marketing game plan for 2019 and beyond. Retail and business services are tied for the most popular small business industry, with both accounting for 13 percent of the total share. 40) 31% of small business owners identify driving sales as their top marketing goal. Skip to main content . Small business continues to thrive across many industries. After all, it’s practically impossible to start and maintain a successful company without a well-developed plan. This might not seem like an overly encouraging stat, but bear in mind that with the right funding, adaptability, and knowledge, you can avoid the common pitfalls of owning a small business and push past the start-up stage. Simply having an idea is not enough—you need to define objectives and predict your income stream if you want to make it. Small business statistics indicate that most owners work hard to make their company succeed, particularly when they’re just starting out. If you have your own company (or plan to start one soon), then the best way to make a sound business plan is to familiarize yourself with a few small business statistics. General Small Business Statistics Small Business Failure, Growth, and Operations Statistics. It has fewer employees and earns less yearly revenue than a large business, but the exact definition varies from industry to industry. 2) There are 30.2 million small businesses in the U.S.A. 3) Small businesses account for 99.7% of all businesses in the U.S.A. 4) Micro businesses account for 75.3% of private-sector employers. Since 2007, the number of women-owned businesses in the United States has increased by a whopping 58%. 12) 64% of small business owners begin with only $10,000 in capital. Construction and contracting closely follows at 12 percent of the share. Other areas small business owners plan to budget for are website analytics (14 percent), CRM (13 percent), and email marketing services (13 percent). Some economic data is also supplied for U.S. territories. In general, 40% of companies are profitable, 30% break even every year, and 30% continue to lose money. And it continues to grow and diversify with each year. Of those with websites, 79% claim that theirs is mobile-friendly. These small business social media statistics paint a very definite picture – you’re ignoring new marketing approaches at your own risk. How much capital you need to start a business depends on a lot of factors, but research shows profitable small businesses can be financed for as little as $3,000. Published in September 2019, this infographic revealed that small businesses accounted for 65% of net new jobs from 2000 – 2018. A small business is a privately held corporation or a sole proprietorship. Get stats on ecommerce, social media, mobile, content, email, SEO & more. Small businesses employ 59 million people in the U.S.A. 64% of small business owners begin with only $10,000 in capital. In fact, around 36% of small businesses are working without websites, states the Small Business Association (SBA). Small business marketing statistics revealed that 38% of the participants would like small businesses to have more social media engagement, and another 38% prefer in-person engagement through events. And only 5% of small businesses found SEO the most successful strategy to grow. 89% of small business owners believe that using SEO also helps. Small Business Saturday: November 28, 2020 The 2018 County Business Patterns series counted 7,912,405 establishments in the U.S. and most (6,746,422) had less than 20 … 18) Only 40% of small businesses are profitable. According to the latest small business statistics, nearly one-third (31 percent) of small businesses in the U.S. are currently not operational (Facebook, 2020). Given that it can take as few as six days to file the paperwork and open up your own company in America, it’s no wonder people are eager to jump at the opportunity. If you don’t want to read through a bunch of boring research papers, don’t worry—we’ve got you covered. If you meet all the criteria, you might be able to apply for one and get a lump sum to finance your business endeavor. Learning the ins-and-outs of the industry and how other similar firms made it work can help your own company grow and thrive. ... April 2020 - June 2020. The competition is stiff, but most owners have a positive outlook on the future. Huge list of small business marketing statistics (2020 update). 17) 86.3% of small business owners earn an annual salary of less than $100,000. Social Media: Saying No Is Dangerous You’ve likely tried a social media campaign for your small business in the past. 2020’s hottest small business industries. Only 64% of small businesses have their own website. Small Business Facts: Small Business Employment Plummets Office of Advocacy Jun 1, 2020 Since a declaration of emergency for COVID-19 was issued on March 13, 2020… Fascinating Small Business Statistics & Facts 50% of small businesses will survive 5+ years and 33% – 10+ years. In the European Union it’s under 50, and in America it’s under 500. 28) 17% of small businesses fail because they lack a business model. Small businesses are important to the U.S. economy because they make a significant contribution to the yearly GDP while also creating job opportunities, especially for disadvantaged minority communities. Australia's national statistical agency providing trusted official statistics on a wide range of economic, social, population and environmental matters. 15) The average small business loan is worth $633,000. Some websites can persuade prospects to make a purchase decision, while others don’t move the needle. They contribute to the local economy by bringing stability, jobs, and financial growth, and they can offer a more diverse inventory or specialize in unique services. 8) Small businesses employ 59 million people in the U.S.A. 9) 84% of small business owners indicate that they’re feeling optimistic about the future of their companies. From eCommerce stores and brick-and-mortar boutiques to finance consulting, art galleries, and craft breweries, small businesses are as varied as they are numerous. As of 2017, there are 3,511.41 secure internet servers per 1 million people across the globe. According to the latest survey from Visual Objects, about one-third of small businesses (29%) plan to begin using websites for the first time in 2020. Small Business Facts: Small Business Employment Plummets Office of Advocacy Jun 1, 2020 Since a declaration of emergency for COVID-19 was issued on March 13, 2020, total private employment dropped by over 15 percent. Digital technology is driving many changes in consumer behavior and the business environment. Indeed, it’s not uncommon for bosses to work 60-hour weeks. It might surprise you to know that a lot of small businesses succeed despite starting off without any money behind them. What’s more, visiting the website of a business is often the first step in the buyer’s journey. Small business stats show that the majority of businesses in America have fewer than 500 employees. Tech, health, and energy are not the biggest industries out there, but right now they’re the most lucrative ones. That number keeps rising by the day. Without a product that stands out, they can’t increase their sales enough to finance their own growth. 2 Royersford, PA 19468 I guess it is a minority for most already have their own website. If your company doesn’t, you’ll struggle to compete. One staggering statistic comes from Cisco: By 2020, there will be almost a million minutes of video per second crossing the Small business revenue dropped off a cliff (among other things). Julia A. is a writer at SmallBizGenius.net. It’s difficult to calculate how many businesses are successful because it largely depends on the industry. You need to have a great business idea that is not only in demand but unique too. While their overall market-share has decreased over the years, they’re still an important part of our financial system. LLCs also saw a 62% drop in employees, as well as a 51% drop in payroll. are generated each year, and why are small businesses important for our economy, you can find all the answers after the stats. There is a great percentage of startups that fail because they don’t provide anything original to consumers in a competitive market. For general small business statistics, the most current and information data was released in the form of an infographic, compiled from US Census Data. Key takeaways: As of January 2020, there were 4,437,215,927 (4+ billion) internet users. Construction and contracting closely follows at 12 percent of the share. While 75% manage to survive their first year, the majority can’t seem to push past the five-year mark. Defined as those with fewer than 20 employees, there are approximately 530,000 small businesses in New Zealand representing 97% of all firms. Thanks for sharing such an informational blog which will, surely be a big help to the small medium business owners, Your email address will not be published. 2013-14 financial year. Payroll fared even worse for small businesses, suffering a 54% drop in Q2. Our research into video marketing statistics suggest that video will be a great way to grow your network and customer base, not just this year, but in the future. Stats show a whopping 89% have a habit of working weekends, while 81% work nights. Only 40% of small businesses are profitable. Defined as those with fewer than 20 employees, there are approximately 530,000 small businesses in New Zealand representing 97% of all firms. So there is no surprise that 25% of small businesses plan to use digital marketing in 2020. Following are some tips to create a lead generation website for your small business:eval(ez_write_tag([[250,250],'smallbiztrends_com-leader-2','ezslot_12',147,'0','0'])); It goes without saying that small businesses often try to reach local customers to grow. by Scarlett Cook. After all, small enterprises are the backbone of the American economy, and every person with an idea and the drive to succeed should be given a proper chance to better themselves professionally. Of those with websites, 79% claim that theirs is mobile-friendly. For those readers who are looking for quick answers, we’ve also prepared a small FAQ section at the end of the article. Companies that perform effective competition research are more likely to adapt and improve their services to get ahead. So you should not ignore the power of local SEO. The 8 Practical Blogging Trends You Really Need to Follow in 2020; General Statistics. Small companies tend to hire more often than big ones because they need employees to grow and expand. The survey includes information on small business operations and finances, requests and receipt of assistance, and measures of overall well-being and expectations for recovery. With around 534,000 new businesses started every month, it’s obvious that the market is highly competitive, and that living out the dream of being your own boss might not be quite as easy as it seems. Technical services and construction are the most common industries in which veterans own businesses. People are now more skeptical than ever on traveling. It’s surprising how many startups fail because they don’t have a business model. The pandemic has pressed the pause button on all trade shows and live events. Source: U.S. Small Business Administration; 92% of small business owners think that having a website is … The main purpose of a business is to fulfill its customers’ needs. The most profitable small businesses made over $1 million last year, while the least profitable 16% made less than $10,000. Small Business Statistics 2020. Estimate 4 for 2020-21 is $104,984m. Most companies, regardless of which industry they operate in, can benefit from advertising their business online. For small business owners on a tight budget who welcome the idea of keeping their website simple, the best value, best quality platform I've found is Carrd.co. Get stats on ecommerce, social media, mobile, content, email, SEO & more. 38) Only 64% of small businesses have their own website. Small business employee growth, financing, turnover, profit, survival rates. SMEs account for 99.9% of the business population (6.0 million businesses). The most visited websites are Google.com, Youtube.com, and Facebook.com Note: This small business cyber security statistics article is one that we periodically update with new data. Apparently, the average is just below 10% – one in 12, to be precise. While the competition is certainly stiff, a consistent business plan can help you stay on top of the game and build your company from the ground up. Small Business Website Statistics (Updated January 2019) Small Business Website Statistics – The Basics. A lot of small businesses hire full-time workers even when they don’t have enough work to make it worthwhile. 64% of small business owners begin with only $10,000 in capital. Retail and business services are tied for the most popular small business industry, with both accounting for 13 percent of the total share. These 2019 small business website statistics illustrate just how important it is for any small businesses to have a professionally built, mobile-first website. Small business technology trends. This year’s profiles report on state economic growth and employment. Visual Objects conducted this survey to understand how small businesses plan to grow this year. As a small business owner, you should try to adopt a mix of channels for better results. Its research shows that the average small business owner makes $69,532 a year. Having a website is a must as people now search online before buying anything. One of the reasons so many new businesses open each year is the relative ease of getting started. By impressing their customers, they give themselves a better chance of succeeding. However, the efforts tend to pay off in the long run. Collection of internet statistics and facts for 2020. Feb 2020. Financing should always be a top priority, regardless of what kind of company you’re trying to run. Take a look at some of the latest trends and small business statistics. eCommerce, which is commercial transactions that take place electronically over the internet, continues to grow like crazy. 34 Profitable PPC Stats to Keep Your Eye on in 2020, Direct Mail Statistics That Will Have You Running to the Post Office, 70 Recruitment Statistics for Attracting Top Talent in 2020. Save my name, email, and website in this browser for the next time I comment. The Office of Advocacy’s Small Business Economic Bulletin for April 2020 charts pre-pandemic trends for the small business economy through 2019. 24) 27% of businesses aren’t able to receive the funding they need. That wraps up this summary of my favorite small business statistics from the new Small & Medium Business Trends report — but there is way more to be found within its pages. At the start of 2020 there were 5.94 million small businesses (with 0 to 49 employees), 99.3% of the total business. While the number of African American business owners is on the rise, a lot of firms still struggle to find enough capital to hire employees. If you planned to start your business in one of these sectors, your services are bound to be in high demand. At any given time, 84% of Americans are shopping for something (Google, 2019) Here are some general internet facts and statistics that you’re sure to appreciate as you make your mark in this competitive landscape and grow your business into a successful one that your customers love. They also spark innovation and bring original ideas and products to the market. In this collection of business websites, I’ve found 27 websites that are suited to different industries and services. All rights reserved. 1) The Small Business Administration defines a small business as a firm with fewer than 500 employees. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs. Haven’t they already started? While this number looks impressive, it actually only represents 4.3% of total private-sector revenue. Consumers too are not stepping out of their homes as much. They can also generally get bank loans sooner and more easily. WordPress powers 35% of the web. Roughly 47% of them plan to invest in marketing efforts, followed by the 33% whose primary focus is developing strategic alliances with business partners. No financing often means no sales and not enough money to hire the workers you need. Be sure to check back periodically for updates and fresh SMB cybersecurity statistics! The Bureau of Labor statistics small business failure rate from 2004 to 2015 tells us that the healthcare and social assistance industry is the most fertile ground for startups. Companies that run seasonal businesses encounter this problem more frequently than others. 2020 Trends for Women in Business. A different set of figures comes from private firm Payscale. Given that 290 million people in the U.S.A. have access to the internet, it’s a lot easier to work from the comfort of your own home. It’s clear that, despite all the progress women have made, there’s still a long way to go before we achieve gender equality in the workforce. SBA loans are issued by banks but guaranteed by the Small Business Administration. While 40% of businesses start to become profitable at one point, 30% start losing money, and 30% break even. Video Marketing Trends for 2020 and Beyond. For example, finance, insurance, and real estate seem to be doing particularly well—58% of these companies still operate after four years. Nowadays, a website has become the storefront for business. If you’re thinking of starting your own venture, bear in mind that you’ll be facing stiff competition from all sides. Most of your customers tend to have accounts on platforms like Instagram, Facebook, and Twitter. However, not all websites are created equal. 22) On average, one in 12 businesses closes every year. This should give you a rough idea of how much money you might be able to get to start your business. Kudos if you have a website for small your business because many small business owners still don’t have websites for their businesses. 33) 46% of African American small business owners are the only employee in their own firm. by Scarlett Cook. You can’t have a list of small business digital marketing statistics or online business statistics without including eCommerce statistics. 25) 42% of failed small businesses offer products or services that don’t bring anything new or useful to the market. It’s almost unthinkable that a firm could function without a website these days, and yet more than one-third do. Given that a lack of marketing strategy is a major contributing factor to the small business failure rate, creating a website is a necessity. According to the U.S. Bureau of Labor Statistics, the demand for software developers is expected to increase by 21% through 2028, and the median pay in 2018 was $105,590 per year. Source of the above: American Community Survey, U.S. Census, 2017. In America, you can get most of the paperwork and licenses you need in as little as six days. At that point in time, the number of small businesses was increasing, and small businesses … However, one of the challenges of home-based businesses is running an effective marketing campaign, so owners need to be organized and advertising-savvy if they want to build a good customer base. Buildings and structures fell by -3.7% in the September quarter 2020. 21) 50% of small businesses survive for at least five years. Required fields are marked *, Founded in 2003, Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and the people who interact with them. Small business trends show us that companies are becoming more aware of the importance of advertising. Small Business Facts: Small Business Employment Plummets Office of Advocacy Jun 1, 2020 Since a declaration of emergency for COVID-19 was issued on March 13, 2020… It’s just a small increase from 86.8% in 2019, but when you’re at such a high level of saturation, there’s not much room for more growth. If you’re interested in benchmarking against other small businesses, getting a sense of the landscape, or seeing what differentiates growing businesses from stagnant ones, make sure to download the free report . But if you don’t advertise it effectively, no one will buy it. ... Census Business Builder offers small business owners selected Census Bureau & other statistics to guide their research for opening or expanding their business. 42) 61% of small businesses invest in social media marketing. 92% of small business owners think that having a website is the most effective digital marketing strategy. 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